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TMI Blog2022 (11) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... They are merely cut and fixed for pumping water through the irrigation system. They do not lose their characteristic. Therefore, the petitioner was indeed entitled for deduction in terms of sub-section 2(b) of Section 3-B of the Act - the petitioner has discharged the burden of proof that is required. Sprinklers and Drip Irrigation Equipment was specifically introduced in Entry 69-A of Part B of First Schedule with effect from 05.03.1997 for the first time. The finding of fact rendered by the Tribunal, need not be interfered while exercising the extraordinary jurisdiction under Article 226 of the Constitution of India. We however, differ with conclusion arrived by the Tribunal. Pipe remains a pipe when it is integrated for use along with pumps and nozzle in a Drip Irrigation System. Therefore, the petitioner was entitled to the benefit of deduction under Section 3-B (2)(b) of the Tamil Nadu General Sales Tax Act, 1959 on the pipes used in the execution of work contract. Petition allowed. - W.P. Nos. 31368 And 31369 of 2022 - - - Dated:- 9-11-2022 - Hon'ble Mr. Justice S. Vaidyanathan And Hon'ble Mr.Justice C. Saravanan For the Petitioner in both WPs : Ms.P.Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... First Schedule for the perid from which existed upto 16.7.96 and from 17.7.96 onwards respectively. The Entry in item 63 of Part D of First Schedule upto 16.7.96 and Entry 67 of Part D of First Schedule speaks as follows: All other goods not specified elsewhere in any of the schedules. 20. So, as long as, the Sprinkler and Drip Irrigation System does not have a specific entry in the Schedule, as per Entry 63 and Etry 67 of Part D of the First Schedule, says they have to be classified under that Entry. So, the assessment made by the Assessing Authority classifying the Sprinklers and Drip Irrigation Equipments that had been transferred or sold has to be necessarily classified under Entry 63 of Part D of First Schedule upto 16.7.96 at the rate of 8% and from 17.7.96 onwards at the rate of 11% as done by the Assessing Authority for the year 1995- 96 and 1996-97 are correct. Moreover, even if it is construed as a transaction coming under Section 3-B of the TNGST Act, which speaks as follows: Sec 3-B Levy of tax on the transfer of goods involved in works contract: Notwithstanding anything contained in sub-sections (2- A), (2-B), (3), (4), (7) and (8) of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts and the exemption allowed was disalowed by revision of assessment, the question of penalty does not arise, as thereis no concealment of turnover and the turnovers were very well available with the Assessing Authority and it was allowed exemption accepting the contention of the dealer at the first instance, namely, the original assessment and the same turnover was taken for assessment by revision. So, the penalty levied by the Assessing Authority gains no importance in the light of the decision reported in 140 STC 254 in the case of Ascard Spinners (P) Limited. Therefore, the penalty deleted by the Appellate Assistant Commissioner holds good and no interference is called for, in respect of the same. In the result, the State appeals in CTSA 735/01 and 738/01 stand modified and the State appeal in CTSA 736/01 stands dismissed. 3. The specific case of the petitioner in these two writ petitions, which pertain to the assessment years 1995-96 1996-97, is that the petitoner was issued with a work order for supply of Drip Irrigation materials and installation of the system for the buyers and that the said activity amounted to works contract within the meaning of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We are of the view that when Drip Irrigation System is installed, the pipes i.e, HDPE and PVC pipes used do not lose their characteristic. They are merely cut and fixed for pumping water through the irrigation system. They do not lose their characteristic. Therefore, the petitioner was indeed entitled for deduction in terms of sub-section 2(b) of Section 3-B of the Act, which reads as hereunder: '3-B. Levy of tax on the transfer of goods involved in works contract (1) Notwithstanding anything contained in subsections (2-A), (2-B), (3), (4), (7) and (8) of Section 3, or Section 7-A, but subject to the other provisions of this Act including the provisions of sub-section (1) of Section 3, every dealer referred to in item (vi) of clause (g) of Section 2 shall pay, for each yera, a tax on his taxable turnover of transfer of property in goods involved in the execution of works contract at the rates menitoned in sub-section (2) of Section 3 or, as the case may be, in Section 4. Explanation- Where any works contract involves more than one item of work, the rate of tax shall be determined separately for each such item of work. (2) The taxable turnover of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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